South Asia’s growth prospects have weakened due to tightening financial conditions, with large downside risks in most countries given limited fiscal space and depleting reserves, says the World Bank in its twice-a-year regional update. The report stresses the need to roll back market distortions introduced during the pandemic and address debilitating socioeconomic divides that constrain South Asia’s potential. The latest South Asia Economic Focus, Expanding Opportunities: Toward Inclusive Growth, projects regional growth to average 5.6 percent in 2023, a slight downward revision from the October 2022 forecast. Growth is expected to remain moderate at 5.9 percent in 2024, following an initial post-pandemic recovery of 8.2 percent in 2021. South Asia’s outlook is shaped by a combination of good and bad news in the global economy. Lower commodity prices, a strong recovery in the services sector, and reduced disruptions in value chains are aiding South Asia’s recovery, but rising interest rates and uncertainty in financial markets are putting downward pressure on the region’s economies.
At this seminar, Zoe Leiyu Xie, Senior Economist and Maurizio Bussolo, Lead Economist, Office of the Chief Economist Office for South Asia Region, World Bank, presented the main findings of the report.
8am-9am, Thursday, April 20, 2023 (Japan Standard Time)
Zoe Leiyu Xie
Senior Economist, Office of the Chief Economist for South Asia Region, World Bank https://blogs.worldbank.org/team/zoe-leiyu-xie
Lead Economist, Office of the Chief Economist Office for South Asia Region, World Bank
Expanding Opportunities: Toward Inclusive Growth (PDF)
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